A Foundation is a legal entity, which consists of a Council of Members, a Guardian, and Beneficiaries. It comes into existence when an individual or other legal entity (known as the Founder) transfers the legal ownership of assets (of almost any nature) to it, and is formally registered like a Company.
The drafting of the constitution of the Foundation requires considerable care when considering tax issues.
Lutea Hong Kong can advise on the establishment of Family and Charitable Foundatons and has sister companies which are registered statutory Council Members of and can establish and administer Foundations in Jersey and Anguilla.
Lutea will provide initial advice, establish, act as Council member and administer Foundations including the following:
– Maintenance of Council minutes
– Regular monitoring of assets
– Maintenance of accounting records
– Production of annual accounts
– Preparation of Tax returns (for UK only)
– Provision of relevant information to the Founder or Beneficiary or his or her adviser for taxation purposes
– Regular meetings with the Founder or Principal Beneficiaries
Lutea will agree a fee for the establishment of the Foundation to incorporate initial advice and drafting of relevant documentation, or reviewing relevant initial advice and drafted documentation and execution of the Foundation documents and procurement of the Initial Endowment and registration of the Foundation as the Statutory Council Member.
Lutea will agree an annual trustee and administration fee which will depend upon the size, nature and variety of asset type of the Fund, the amount of activity of the Fund and the time taken to administer it.